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First Capital Holdings PLC announces LKR 2 Billion Debenture Issue

Colombo, 24th January 2021 : First Capital Holdings PLC (the Group), intends to raise a sum of LKR 1 billion via a Listed, Rated, Unsecured, Senior, Redeemable Debenture issue with a tenor of 5 years with an option of issuing up to a further LKR 1 billion in the event of an oversubscription 

Accordingly, FCH will issue 10 million debentures, with the ability to extend to a further 10 million in the event of oversubscription and will be listed on Colombo Stock Exchange by way of an Offer for Subscription.  The issue is rated [SL] A with Stable outlook by ICRA Lanka Limited. The debentures in the denomination of Rs. 100 are offered in two variants, Type A with 5-year fixed interest rate of 10.00% p.a (AER 10.00%) payable annually, Type B with 5-year floating interest rate of weekly AWPLR + 2.00% p.a payable annually. 

The funds thus raised, are intended to finance the growth momentum of the Company while extending the funding mix said First Capital’s Chief Operating Officer, Tharusha Ekanayake. 

He further elaborated that the funds raised through the Debenture Issue will be utilized to establish a Dealing Securities Portfolio consisting of listed/unlisted debt and equity. The Issue will open for subscription on Monday 1st February 2021 and managed jointly by the Corporate Finance Division of First Capital Limited and People’s Bank Investment Banking Unit.

The rating of First Capital Holdings PLC and its subsidiary, First Capital Treasuries PLC was recently upgraded to [SL]A with Stable outlook by ICRA Lanka Limited. The rating upgrade factors in the financial stability and strong financial performance posted by the Company in the preceding years. 

First Capital is a member of the Janashakthi Group focused on delivering performance first through its operations as primary dealer, stockbroker, corporate advisory, debt structuring and wealth management.  First Capital Holdings PLC is the only listed full-service investment institution in Sri Lanka. The Company has over three decades expertise in providing capital market solutions and closed the first half of the financial year 2020/21 recording a post-tax profit of LKR 1.72Bn

The Prospectus and Application Form can be downloaded from www.firstcapital.lk | www.cse.lk.

Dimantha Mathew, Head of Research at First Capital commenting on the bond and stock market performance – 12.02.2020

Dimantha Mathew, Head of Research at First Capital commenting on the bond and stock market performance.

“Secondary bond market witnessed an uptrend from the outcome of today’s bill auction. Stock market bourse ended in red for the fourth straight session on the price losses made in COMB and LOLC.”

First Capital is an investment bank offering services as Stock Brokers in Sri Lanka. The Company acts as a conduit between retail and institutional clients and the secondary market of the Colombo Stock Exchange. First Capital’s best-in-class research team provide a series of actionable trade recommendations, daily and periodic market commentaries and publications for Stock Brokers in Sri Lanka.

First Capital Holdings PLC is an investment bank and is the pioneer non-bank affiliated Primary Dealer in Treasury Bills and Bonds in Sri Lanka. With a track record of over 25 years, the Company was the first licensed primary dealer appointed by the Central Bank, and is also the only listed and rated primary dealer in Treasury Bills and Bonds in Sri Lanka. First Capital delivers the only source for fixed income research in the local financial services industry. The Company’s best-in-class research team provide dynamic reports including economic reviews and proprietary research, encompassing fundamental, quantitative and technical analysis.